Top Significant Advantages of Trademark Registration

Are you planning to commence your startup? And definitely for this, you have an innovative business idea and a lump sum amount to fulfill the various need of your business. You have a plan to hire HR, a technical team, and a sales team to ensure the smooth functioning of your business. But, wait! Are you not forgetting a crucial aspect to secure your business? Are you not forgetting to protect the identity of your business? If yes, then you should consider the Trademark Registration of your business. Yes, whether a startup or any large enterprise trademark registration is imperative for business. Trademark registration not only protects your business from any financial and legal calamities but also proves beneficial for business in numerous ways. This web article aims to highlight five significant advantages of trademark registration for startups.

Top Significant Advantages of Trademark Registration 

Legal Protection: Upon registration, a trademark is classified as Intellectual Property (“IP”) and infringement of the trademark is protected under the Indian Trademarks Act, 1999 (“Act”). The owner of the trademark has a right to civil and criminal remedies under the Act. Registration of a trademark provides legal protection in case of any unauthorized use or passing off or usage of deceptively similar marks.

Asset: Registration of a trademark creates an intangible asset to the business organization and such IP can be sold, assigned, franchised, or commercially contracted to third parties in any manner for commercial gain.

Differentiation of products: The products or services that are represented by trademark registration are distinct. A trademark will allow you to distinguish your products from that of your competitors. As trademark registration is applicable to an entire class of goods and services, it aids in distinguishing your products. Customers associate the product’s quality with the brand name which builds the reputation in the market and thereby attracts new customers.

Trust and Goodwill: Goodwill and trust in the market among customers are established by the quality of your products or services and a registered trademark enhances the value, net worth, and goodwill of the company and its business in the market. Registered Trademarks facilitate the communication of the brand’s distinct features, qualities, and vision of the company and help in the expansion of the business. 

Global Trademark Registration: Trademark Registration in India acts as a good basis of registration with established goodwill and it helps the domestic traders in gaining recognition in global markets through International Trademark System. Both foreigners and non-residents are eligible to register their trademarks in India.

® symbol: After registration, one can use the ® symbol for the products and services listed in the registration. The ® symbol implies that it is a registered trademark and gives protection to ensure no unauthorized use.

Infringement: With registration, the owner of the trademark has exclusive rights to the trademark and can sue the third party if such trademark is used with permission before the appropriate Courts for infringement.

Cost-effective: The cost of registering a trademark is relatively less and the registered trademark is valid for 10 years. The only thing that requires to be paid for is maintenance and renewal cost. Therefore, one can effectively register a trademark at a low cost for a long time.

Types of Trademarks Registered:

Product trademarks: affixed to identify the goods.

Service trademarks: affixed to the services provided by the business entity. They are also used for advertising.

Certification trademarks: the goods or services are certified according to their use, origin, material, method of manufacture, quality, and technical specifications. 

Collective trademarks: registered by those under the name of groups, associations or other organizations. It is used by its members to identify the characteristics set by that organization.

Application for Trademark Registration:

A person who claims to be the proprietor of the trademark can apply for the registration. Before making a trademark, one must conduct a trademark search in the Trademark office to ensure that the design of the trademark is not already registered. One may design:

• Any name which is unusual for trade.
• The invented word which is not descriptive of the character or quality of goods and services.
• Letters or numerals, or maybe a combination of both.
• The right to the proprietorship of a trademark in accordance with the legislation.
• Devices or symbols
• Monograms
• Combination of colors or even a single color in combination with a word or device.
• Marks constituting 2D signs.
• Shapes of goods and their packaging.
• Sound Marks.

Final Thought

Today, India's startup culture is thriving and the market is filled with rigorous competition. In this scenario, if you want to grow your startup and achieve success in the long run then trademark registration is imperative. When you register your startup business with a trademark, then it becomes easier for you to run the business smoothly and circumvent financial loss in the future.